AU Evening Wrap: ASX Closes 0.5% Higher, Led by Lithium and Iron Ore Miners

Bullish sentiment about the main steel ingredient, on hopes that China may announce stimulus measures to boost its slowing economy, lifted shares in the mining sector. Iron ore futures for delivery in July on the Singapore exchange rallied 1.3 per cent to $US103.45. $BHP Group Ltd (BHP.AU)$ rallied 2.8 per cent to $43.25. $Rio Tinto Ltd (RIO.AU)$ rose 2.5 per cent to $110.15 and $Fortescue Ltd (FMG.AU)$ advanced 1.7 per cent to $19.69.

Lithium miners also rose, tracking a rally in the white-metal prices. $Core Lithium Ltd (CXO.AU)$ jumped 3.9 per cent to $1.08, $Pilbara Minerals Ltd (PLS.AU)$ added 3 per cent to $4.47, $Allkem Ltd (AKE.AU)$ advanced 3.2 per cent to $14.77, $IGO Ltd (IGO.AU)$ rose 2.5 per cent and $Mineral Resources Ltd (MIN.AU)$ gained 1.8 per cent.

Still in the commodity world, $St Barbara Ltd (SBM.AU)$ shares leapt 5.4 per cent to 58.5¢. The gold miner recommended that shareholders vote in favour of the Genesis acquisition offer for its Leonara assets rather than accept a rival bid from $Silver Lake Resources Ltd (SLR.AU)$.

$Paladin Energy Ltd (PDN.AU)$ shares vaulted 10.7 per cent to 67¢ after the Namibian government clarified its position on taking stakes in mining and petroleum companies.

The $S&P/ASX 200 (.XJO.AU)$ closed up 0.5 per cent, or 34.3 points, to 7145.1. The All Ordinaries advanced 0.6 per cent to 7331.2.